Participants Have Staggering Misconceptions about Savings, Rollovers, and Debt

Participants Have Staggering Misconceptions about Savings, Rollovers, and Debt


A recent survey from Lincoln Financial Group found that participants saving for retirement are confused about several key areas, including how much to save, rolling over money from retirement accounts, and how to prioritize paying off debt versus savings.

  • 22% of survey respondents said they didn’t know if the following statement was true: “As a general rule, if you save enough in your workplace retirement plan to meet the employer match, you are probably saving enough to be on track for a comfortable retirement.” These percentages rise to 32% for respondents younger than 24.
  • Nearly 23% indicated they believe that they can only change the amount they contribute to their retirement plan during benefits open enrollment, and 20% said they don’t know.
  • More than 37% of employed U.S. adults agreed with the statement, “I don’t know what I should be looking for when I get the quarterly statement from my workplace retirement savings plan or log in to view my balance online,” – and this figure jumps to 43% among female respondents.

Review the full survey here>>

Participant education is an important part of your benefits program and employees need help to maximize outcomes from their participation.

What can plan sponsors do?

  • Talk to us here at SRC (615-962-8250) or contact your financial advisor about creating a communications program for your plan participants.
  • Ask your recordkeeper if they have any participant education materials that address financial planning topics that you can distribute to employees.
  • Host webinars alongside your financial advisor to address participant questions on debt consolidation, savings outside of retirement, and other topics.

If you’d like more ideas about helping to address participant concerns, reach out to your SRC account representative.

–Chris Oneal, President, Stones River Consulting


The SECURE Act Gives More Time to Sponsor Qualified Retirement Plans


On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE Act) was signed into law. The goal of this legislation was to improve retirement security through expanded workplace plan coverage, reduced employer administrative burdens, and various other elements.

One important provision in the SECURE Act was that it changed the deadline for a business to establish a qualified retirement plan to a business’ tax filing deadline, (including extensions). This gives owners an opportunity to adopt a plan for the 2020 plan year.

The plans that may be sponsored under to this extension include:

  • Profit sharing plans
  • Defined benefit plans
  • Cash balance plans

Profit sharing and cash balance plans allow contribution amounts in excess of traditional 401(k) plan limits. This extension also allows business owners to receive additional tax deductions for the 2020 tax filing year.

Contact Stones River Consulting to learn more.


Important Deadlines to Remember


April 15

  • For C Corps and Sole Proprietors (with no tax return extension), employer contributions must be remitted in order to take tax deduction.
    (TPA, Plan Sponsor)
  • IRS deadline for processing corrective distribution for 402(g) Excess Deferrals.
    (TPA, Plan Sponsor, Recordkeeper)
  • Deadline to adopt a profit sharing plan for 2020 for C Corps or Sole Proprietors with no tax return extension. (TPA, Plan Sponsor)

June 30

  • Deadline for processing corrective distributions for failed ADP/ACP tests from plans with EACA without 10% excise tax. (TPA, Plan Sponsor, Recordkeeper)

July 31

  • IRS deadline for filing Form 5500 without an extension or filing Form 5558 to extend Form 5500 filing date. (TPA, Plan Sponsor)



7 Signs Your Retirement Plan Needs an Upgrade

Retirement plans can be very complex if plan sponsors don’t have the right partner by their side to help navigate the ins and outs.

Stones River Consulting created a new guide titled, 7 Signs Your Retirement Plan Needs an Upgrade, that helps plan sponsors understand:

  • What the four critical areas of a retirement plan are that need to be properly managed to maintain a successful retirement plan.
  • Warning signs that a plan may be in danger of falling outside of compliance.
  • How to get help to maintain a compliant retirement plan that benefits both the plan sponsor and its employees.

To request this guide, click here>>



If you have any questions or would like a complimentary retirement plan analysis, click here>>